I have the same problem but I found a way past it.
If you edit the boot command from the LiveDVD start screen in the following way.
Delete back up to the end of dodmraid but leave it in and then type: nokvm noacpi ide=nodma noudev dodevfs
This has worked for me every time and im writing this from within sabayon now.
I have SATA hard drives but an IDE DVD drive, does everyone else who is having this problem have this configuration?